ARCHIT GAUTAMBHAI PATEL,VADODARA V. ITO GUJ-W-(301)(94), VADODARA

ITA 1537/AHD/2024

AI Insights

This case involves Archit Gautabhai Patel, an individual engaged in the pharmaceutical business, who appealed against an ex-parte appellate order by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal arose from an assessment order under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 for the Assessment Year 2021-22. The assessee had declared a total income of Rs.39,10,940 in his return, which was selected for scrutiny due to discrepancies in turnover and net profit increases in the pharmaceutical industry. The Assessing Officer disallowed various expenses and interest expenses, leading to an addition of Rs. 24,30,642 to the assessee's income. The initial appeal was dismissed for non-prosecution, but upon submission of additional documents due to the assessee's inability to present earlier, the Tribunal decided to set aside the lower authorities' orders and remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23221 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Additional evidence; Principle of natural justice
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Makarand Vasant Mahadeokar, Accountant Member Archit Gautabhai Patel 10A Vrindavan Park Nr. Swati Society, OPP. Jivan Chetna School, EME Sama Road, Vadodara-390024 Gujarat PAN: AOMPP9476P (Appellant) Vs The ITO, Ward-1(3)(1), Vadodara (Respondent) Assessee Represented: Written Submission Revenue Represented: Shri Santosh Kumar, Sr.D.R. Date of hearing : 20-02-2025 Date of pronouncement : 21-02-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the ex-parte appellate order dated 23.08.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2021-22. ITA No. 1537/Ahd/2024 Assessment Year 2021-22 I.T.A No. 1537/Ahd/2024 A.Y. 2021-22 Page No Archit Gautambhai Patel. vs. ITO 2 2. Brief facts of the case is that the assessee is an individual engaged in Pharmaceutical business. For the Asst. Year 2011-12, assessee filed its Return of Income on 14-02-2022 declaring total income of Rs.39,10,940/-. The return was selected for scrutiny as the Pharma Industry has shown large increase in turnover but there is no corresponding increase in net profit. During assessment proceedings, the Assessing Officer called for various expenses namely CME Business Development Expenses, Consumables, Medical Purchase, Staff Salary, etc. The assessee furnished partial information. Based on the same, the Assessing Officer made an addition of Rs. 22,11,306/- disallowing various expenses and interest expenses of Rs. 2,19,336/-. 3. Aggrieved against the same, assessee filed an appeal before Ld. CIT(A) but the appeal was dismissed for non-prosecution. 4. At the outset, the assessee vide its letter dated 17-01-2025 submitted that the assessee could not file the relevant details before the Lower Authorities, since his father was hospitalized for major surgery at Ahmedabad. Now at this juncture, the assessee filed, bank statements, supplier invoices, bank loan statements and other records as additional documents and requested to admit the same. The assessee filed the additional documents as Annexures A to I running to 139 pages. 5. Ld. Sr. D.R. appearing for the Revenue has no serious objection in setting aside the matter back to the file of Jurisdictional I.T.A No. 1537/Ahd/2024 A.Y. 2021-22 Page No Archit Gautambhai Patel. vs. ITO 3 Assessing Officer to verify the additional documents filed by the assessee. 6. Therefore in the interest of Principle of Natural Justice, we deem it fit to set aside the orders passed by the Lower Authorities with a direction to the Jurisdictional Assessing Officer to take on record, the additional evidences filed by the assessee and pass fresh assessment order in accordance with law by providing proper opportunity of hearing to the assessee. Needless to say, the assessee should make use of this final opportunity of hearing and cooperate with the Jurisdictional Assessing Officer for passing fresh assessment order. 7. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 21-02-2025 Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 21/02/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "